Instead, one of the most important metrics that I account for when considering my portfolio is return on equity (ROE). Calculated as follows: NOI/ current equity. This metric gives an investor a true sense of how much of a return a property is providing, given its current market value.

Lastly, a very un-scientific but very important metric for an investor to consider is the property’s hassle-factor. Some properties (say, a multi-tenant office building with gross leases) might perform quite well on paper, but may also score very high on the hassle-factor scale through frequent tenant phone calls, vacancy, and capital improvement requirements. Hassle-factor is different for each investor, but it can’t be overlooked or underestimated. Most investors learn what their hassle-factor tolerance is through experience.